Anchor resume from 31 of March to 7 of April 2017
Monday, 10 of April 2017
The week was started with the focus set on the evolution of the armed conflict in Syria after a few days largely monopolized by the actions taken by the United States.
More specifically, during Friday, the equity markets suffered by the attack that the United States carried out, which was justified by the assault with chemical weapons produced the previous day. We also attended to the meeting of Donald Trump with the Chinese President Xi, who insisted on the cooperation in trade and investment.
We have seen as well the update of the minutes from the FED, which surprised us after the announcement that they were beginning to discuss the withdrawal of purchases in the fixed income markets, which currently represents USD 4,5 trillion in the FED balance sheet. The effect this had on the equity markets was, in general terms, negative. The technological selective Nasdaq Composite fell by -0,57% to end at 5.877, while the S&P-500 went down by -0,30% (up to 2.355). As for the currency, new gains were registered in relation to the common currency, now around the 1,0588 EUR/USD the pair. Falls that were not benefited by the last published non-agricultural employment data, which presented the worst data in 2017 (current 98.000 vs expected 180.000).
On the other hand, in the Eurozone, the minutes published by the ECB and Mario Draghi's statements pointed out that it is too early to apply reductions in ECB buying levels as well as to raise rate increases. This time, it related directly the recent upswings of inflation with the actions carried out, and the monetary policy established by the institution. It downplayed recent improvements in price levels and pushed the common currency down. Nonetheless, macroeconomic data continued to be positive, manufacturing PMIs from March with expansion rates (current and expected 56,2), and retail sales posting new gains (+0,7% vs. +0,5% expected).
Markets closed mixed, while the IBEX-35 boosted profits after rising to 10.529 (+0,63%), the DAX-30 fell down by -0,71% to 10.225.
The euro on the other hand regained some ground over the pound sterling up to 0,8555 EUR/GBP (+0,85%) pending further news that move the currency markets.
Without any news about the evolution of Brexit, again we talked about the Greek evolution. The talks, as Greek lenders have said, have advanced on the reforms needed to unblock new loans. The President from the European Commission hopes that an agreement will be reached in the coming weeks.
It was in the Asian continent where the biggest falls were recorded. Especially in the selective Japanese NIKKEI-225 after going back -1,80% losing the levels of the 19.000, penalized by a yen that continues to strengthen, and by the bad data published in the US. The Japanese economy, on the other hand, continues to present good growth and activity data, just as the BOJ maintained its willingness to sustain the economy by maintaining monetary stimulus.
As for the commodities market, gold remained at the area of the 1.253 USD/Onz without major changes, while the price of crude rose by +4,56% to the 55 USD/Brent.